Core Viewpoint - Coupang, Inc. has been upgraded by Deutsche Bank from Hold to Buy, reflecting increased confidence in its future despite recent challenges [2][6] Company Performance - Coupang's stock closed at $21.25, showing a 2.21% increase on the latest trading day, outperforming major indices like the S&P 500, Dow, and Nasdaq [2][6] - Over the past month, Coupang's stock has declined by 8.49%, contrasting with the Retail-Wholesale sector's gain of 3.96% and the S&P 500's increase of 1.57% [3][6] - The stock has fluctuated between a low of $20.96 and a high of $21.48 on the latest trading day, with a market capitalization of approximately $38.81 billion [5] Earnings and Revenue Outlook - Analysts predict Coupang's earnings per share will decrease by 25% to $0.03 for the upcoming earnings report [3][6] - Revenue is expected to rise by 16.42% to $9.27 billion compared to the same quarter last year, with full-year projections estimating earnings of $0.16 per share and revenue of $34.97 billion [4][6]

Core Insights - China's artificial intelligence (AI) models are reportedly only "a matter of months" behind U.S. and Western capabilities, according to Demis Hassabis, CEO of Google DeepMind, challenging previous assumptions of a significant gap [3][4] - Chinese AI lab DeepSeek has demonstrated strong performance with models built on less advanced chips, indicating that Chinese companies are making notable advancements in AI technology [5] - Despite progress, there are concerns regarding China's ability to innovate beyond existing technologies, with Hassabis emphasizing the difficulty of achieving frontier breakthroughs [6][8] AI Development in China - Chinese tech giants like Alibaba and startups such as Moonshot AI and Zhipu have released competitive AI models, contributing to the perception of China's rapid advancement in the field [5] - Nvidia CEO Jensen Huang acknowledged that while the U.S. leads in chip technology, China is making significant strides in AI models and infrastructure [9] Challenges Facing Chinese AI Firms - Access to critical technology, particularly advanced semiconductors from Nvidia, poses a significant challenge for Chinese technology firms, which could widen the gap between U.S. and Chinese AI capabilities over time [10][11] - Analysts predict that the lack of access to cutting-edge Nvidia chips may lead to a divergence in AI model capabilities, with U.S. infrastructure continuing to iterate and improve [12] Perspectives on Innovation - Alibaba's Qwen team technical lead, Lin Junyang, expressed skepticism about Chinese firms surpassing U.S. tech giants in AI within the next three to five years, citing a substantial difference in computing infrastructure [15] - Hassabis attributes the lack of groundbreaking innovations in China to a "mentality" issue rather than solely technological restrictions, comparing the need for exploratory innovation to the historical achievements of Bell Labs [16][17]

Group 1: JB Global Capital Performance - JB Global Capital reported an 8.9% decline in Q4 2025, primarily due to a significant drop in Alibaba, its largest holding, while global markets experienced modest gains [1] - Despite the quarterly setback, the fund achieved a strong full-year return of 67.5% and has delivered a total return of 108.9% since inception, outperforming major benchmarks [1] - The fund's strategy focuses on avoiding mega-cap tech companies due to valuation discipline, with an emphasis on fundamentals for long-term performance as market leadership shifts [1] Group 2: The Clorox Company Overview - The Clorox Company initiated a position at an average cost of $104 per share during Q4 2025, marking a decade-low valuation for a business with over 35% returns on invested capital [2][3] - The company faced temporary disruptions from a $580 million ERP implementation, leading to a 17% decline in organic sales in Q1 fiscal 2026, but fill rates recovered to 92% by late October, with full stabilization expected by March 2026 [2] - The ERP investment is anticipated to generate $75–100 million in annual cost savings, including a 30% reduction in forecasting errors and a 15–20% improvement in working capital efficiency [2] Group 3: Valuation and Market Performance - The Clorox Company trades at 16 times earnings with a ~5% dividend yield, and has a discounted floor valuation of $95–103 per share, while fair value is estimated at $134–145 per share, indicating a potential upside of 30–40% [2] - The one-month return for The Clorox Company was approximately -11.25%, and its shares have declined about 31.10% over the last 52 weeks [2] - As of January 14, 2026, The Clorox Company stock closed at approximately $111.41 per share, with a market capitalization of about $13.59 billion [2]

JB Global Capital, an investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During Q4 2025, JB Global Capital reported an 8.9% decline, largely driven by a sharp drop in Alibaba, its largest holding, while global markets posted modest gains. Despite the quarter’s setback, the fund delivered a strong full-year return of 67.5% and stands at 108.9% since inception, outperforming major benchmarks. The letter explains that 2025 market gains were heavily ...

J P M O R G A N Asia Pacific Equity Research 11 January 2026 China Bubble & Brew What's happening? Our views, and takeaways from the expert call What happened? Our take: back to organic We believe the investment thesis for the China FMD sector is now leaning more towards the organic fundamentals, and away from the external swing factors. With incrementally more evidence and new growth drivers in sight, we expect to see more market discussions on the basics instead of the on-and-off of delivery subsidies. Co ...

Core Insights - Alibaba has launched significant upgrades to its Qwen AI app, enabling users to order food and book travel within the app, marking a strategic shift towards consumer-facing AI [1][2] Group 1: Upgrade Features - The new features allow users to complete tasks entirely within the AI chat interface, eliminating the need to switch between applications [1] - The upgrade integrates core Alibaba services such as Taobao, Alipay, Fliggy, and Amap into a unified AI interface, facilitating seamless transactions [4] - A new "Task Assistant" feature in beta can make real phone calls, process up to 100 documents simultaneously, and plan multi-stop travel itineraries [5] Group 2: Market Position and Strategy - This upgrade follows a previous major enhancement to the Qwen app, indicating Alibaba's strategic pivot into consumer-facing AI, an area where it has previously lagged behind competitors like ByteDance and Tencent [2] - The Qwen app has surpassed 100 million monthly active users within two months of its public beta launch, reflecting strong consumer interest [5] - The expansion of the Qwen app is part of a broader competition in China's AI sector, where companies are striving to translate advanced language models into practical applications [6]

Financial Data and Key Metrics Changes - The company has achieved a 60% gross margin, indicating a strong profitability potential moving forward [4] - Cost savings of approximately $135 million have been realized since the new CEO's appointment, with further opportunities for strategic long-term savings identified [7][11] - The adjusted EBITDA margin is projected to be around 8% for 2025, with expectations to exceed previous low double-digit margins in the future [43][44] Business Line Data and Key Metrics Changes - The company has introduced a new entry-level bed priced at $1,599, which offers features comparable to higher-end models, aiming to attract a broader customer base [18][19] - The focus on comfort, value, and durability has been emphasized in product development, responding to customer feedback [15][16] Market Data and Key Metrics Changes - The company is observing a shift in consumer behavior towards seeking value in products, with an emphasis on quality and longevity rather than just low prices [57] - The millennial generation is increasingly prioritizing sleep and wellness, presenting a significant market opportunity for the company [58] Company Strategy and Development Direction - The company is undergoing a transformation with a focus on cost efficiency, product innovation, and modernizing marketing strategies to enhance customer engagement [6][27] - There is a strategic shift towards optimizing the store footprint, with potential slight reductions in store numbers while enhancing the customer experience [45][46] - The company is exploring alternative distribution channels beyond direct-to-consumer, including potential wholesale opportunities [49] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the volatility in the mattress industry but sees "green shoots" of opportunity, indicating cautious optimism for recovery [56] - The company aims to develop a business model that can thrive independently of macroeconomic conditions, focusing on delivering value to customers [56] Other Important Information - Significant changes have been made to the management team, including new appointments in marketing and finance, to drive the turnaround strategy [38][39] - The company has amended and extended its debt covenants to provide flexibility for executing its turnaround plan [33][34] Q&A Session Summary Question: What are the key changes in the management team? - The company has made significant changes, including appointing a new CMO and CFO, while also reallocating existing personnel to leverage their expertise in new roles [38][39] Question: How does the company plan to address its debt situation? - The company amended and extended its debt to align covenants with its operational plans, allowing for necessary changes and improvements [33][34] Question: What is the outlook for the mattress industry? - The management sees potential for growth despite current volatility, with a focus on delivering value and quality to meet evolving consumer demands [56][57]

Financial Data and Key Metrics Changes - The company has achieved a 60% gross margin, indicating a strong profitability potential [5] - Cost savings of approximately $135 million have been realized since the new CEO took over, with further opportunities for strategic long-term savings identified [7][8] - The guidance for 2025 implies an adjusted EBITDA margin of around 5%, with expectations to exceed pre-COVID low double-digit margins over time [39][42] Business Line Data and Key Metrics Changes - The company has introduced a new entry-level bed priced at $1,599, which offers features comparable to higher-end models, aiming to attract a broader customer base [17][18] - The focus on product transformation includes simplifying offerings to enhance customer experience and value perception [16][21] Market Data and Key Metrics Changes - The company is observing a shift in consumer behavior towards seeking value, with customers increasingly looking for quality products at reasonable prices [55] - The mattress industry is experiencing volatility, with signs of potential recovery but also significant uncertainty in consumer confidence [54][55] Company Strategy and Development Direction - The company is focused on transforming its marketing strategy to modernize its approach and improve customer engagement through digital channels [25][26] - There is an emphasis on optimizing the store footprint rather than expanding, with plans for slight reductions and relocations to enhance sales efficiency [44][45] - The company is exploring alternative distribution channels beyond its traditional direct-to-consumer model, including tests with other retail partners [48][49] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the need for a turnaround across product, marketing, distribution, and balance sheet areas, with a clear plan to manage debt and improve cash flow [32][33] - The CEO expresses optimism about the potential for growth in the premium mattress segment, particularly among millennials who prioritize sleep and wellness [56] Other Important Information - The company has made significant changes to its management team, introducing new leadership in marketing and finance to drive customer-focused innovation [37][38] - The partnership with Leggett & Platt remains strong, with the company prepared for potential industry consolidation and supply chain adjustments [50][51] Q&A Session Summary Question: What are the key changes in the management team? - The company has made several changes, including appointing a new CMO and CFO, while also repositioning existing staff to leverage their expertise in new roles [37][38] Question: How does the company plan to address its debt situation? - The company amended and extended its debt to align covenants with its operational plans, allowing for necessary changes and improvements [32][33] Question: What is the outlook for the mattress industry? - The CEO sees green shoots of opportunity within the industry but emphasizes the need for the company to thrive independently of macroeconomic conditions [54][55]

Core Insights - The article discusses the current trends and performance metrics in the investment banking sector, highlighting key financial indicators and market movements. Group 1: Industry Trends - The investment banking industry is experiencing a shift towards digital transformation, with firms increasingly adopting technology to enhance operational efficiency and client engagement [1]. - Recent data indicates a significant increase in M&A activity, with total deal value reaching $500 billion in the last quarter, marking a 20% increase year-over-year [1]. Group 2: Company Performance - Major investment banks reported strong earnings, with an average revenue growth of 15% across the sector, driven by increased trading volumes and advisory fees [1]. - A leading firm in the sector announced a net income of $2 billion for the last fiscal year, reflecting a 10% increase compared to the previous year [1].

Summary of Hong Kong Property Market Conference Call Industry Overview - **Focus**: Hong Kong Property Market, specifically Office and Retail sectors - **Key Preference**: Office sector is preferred over retail due to improving vacancy rates and rental conditions in Central Hong Kong [1][10] Key Insights on Office Sector - **2026 Rental Forecast**: Central office rents expected to increase by +3% (compared to -2% in 2025), while overall office rents projected to decline by -3% [3] - **Demand Drivers**: Increased demand from tech companies, asset management, and wealth management firms is anticipated to help cap rate compression [3][9] - **Vacancy Trends**: Office vacancies are declining, with Central benefiting first from the recovery [10] Key Insights on Retail Sector - **2026 Sales Forecast**: Retail sales expected to rise by +3% (up from +2% in 2025), but rental rates projected to decrease by -3% [4] - **Visitor Trends**: Increased visitation from mainlanders to Hong Kong is noted, but challenges include competition from Shenzhen and mainland e-commerce [4] - **Risks**: Rising unemployment rates pose a risk to retail sales recovery [4] Company-Specific Updates Hongkong Land (HKLD.SI) - **Rating**: Upgraded to Overweight with a price target of USD 7.60 (previously USD 6.50) [5][20] - **Key Drivers**: Strong execution in capital recycling, stabilizing rentals in Central, and transformation into an asset manager [20][21] - **Earnings Revisions**: Slight adjustments in EPS estimates for FY25/FY26/FY27E, with a projected mid-single-digit growth in DPS [25][26] Hang Lung Properties (HLP) - **Rating**: Overweight with a price target of HKD 10.70 (previously HKD 10.50) [5][42] - **Growth Drivers**: Positive tenant sales growth in China, expansion of retail space, and a new capital-efficient strategy [42][43] - **Earnings Revisions**: Adjustments in EPS estimates reflecting improved operating conditions [48][49] Swire Properties - **Rating**: Upgraded to Overweight with a price target of HKD 23.00 (previously HKD 20.00) [5][52] - **Key Factors**: Improving office fundamentals, resilient retail sales in China, and active capital recycling initiatives [52][53] - **Earnings Revisions**: Slight increases in profit estimates for FY25/FY26/FY27E [59][61] Hysan Development - **Rating**: Upgraded to Equal-weight with a price target of HKD 19.00 [5][63] - **Market Position**: Gaining market share in Causeway Bay, with new developments expected to enhance foot traffic [63] - **Concerns**: Potential negative rental reversion and dividend cut risks due to financial obligations [63] Link REIT - **Rating**: Downgraded to Equal-weight with a price target of HKD 37.00 (previously HKD 48.00) [5][28] - **Challenges**: Persisting negative rental reversion and competition from e-commerce and rising unemployment [28][36] - **Earnings Revisions**: Adjustments in EPU and DPU estimates reflecting ongoing challenges in the retail sector [39][40] Wharf REIC - **Rating**: Underweight due to market share losses and persistent negative reversion [5][14] - **Risks**: Tenant retention issues and competition from luxury retail in mainland China [14] Conclusion - The Hong Kong property market is showing signs of recovery, particularly in the office sector, while the retail sector faces significant challenges. Companies with strong capital recycling strategies and exposure to the Central office market are favored for investment.